EITI Progress Report Azerbaijaneiti.az/doc/2015/EITI_Progress_Report_2015.pdf · July 16, 2015 2013...
Transcript of EITI Progress Report Azerbaijaneiti.az/doc/2015/EITI_Progress_Report_2015.pdf · July 16, 2015 2013...
EITI Progress Report
Azerbaijan
2015
2
Contents
Contents ............................................................................................................................................................................. 2
Abbreviations ................................................................................................................................................................... 3
Timeline of activities ...................................................................................................................................................... 4
Assessment of performance against targets and activities set out in the WORK PLAN 2015 ........................ 10
Assessment of performance against requirements of EITI Standard 2013 ......................................................... 16
Overview of the MSG responses to the recommendations from the Validation of EITI 2013 draft report and
Reconciliation ................................................................................................................................................................. 25
SWOT analysis of EITI implementation in 2015 ..................................................................................................... 31
Total cost of implementation ...................................................................................................................................... 32
The members of Multi-Stakeholder Group in 2015 ................................................................................................ 33
Annual Work Plan 2015 ................................................................................................................................................ 34
Action Plan on implementation of corrective actions set by the EITI Board to restore Azerbaijan’s EITI
Compliant status ............................................................................................................................................................ 43
3
Abbreviations
CSO Civil Society Organizations
CSSN Council of State Support to Non-Governmental Organizations under the
Auspices of the President of the Republic of Azerbaijan
EITI Extractive Industries Transparency Initiative
IA Independent Administrator
ITEI Improving Transparency in Extractive Industry
MOU Memorandum of Understanding
MSG Multi-stakeholder Group
NGO Non-governmental organizations
NGO Coalition Coalition of Azerbaijan Non-government Organizations for “Improving
Transparency in Extractive Industries”
PSA Production Sharing Agreement
SOCAR State Oil Company of Azerbaijan Republic
SOE State-owned Enterprise
SOFAZ State Oil Fund of the Republic of Azerbaijan
TOR Terms of Reference
4
Timeline of activities
1 Brackets indicate corresponding action steps in Work Plan 2015
Over the year In 2015 7 Multi-stakeholder Group’s (MSG) meetings on implementation of the Ex-
tractive Industries Transparency Initiative (EITI) were held. Extracts from the MSG
minutes are published at www.eiti.az.
January 1,
2015
The Validation under the new EITI Standard in Azerbaijan was commenced and as
a result, Azerbaijan’s EITI status was downgraded from the “Compliant” to the
“Candidate” by EITI Board on April 14-15 at the EITI Board meeting held in Braz-
zaville, Congo. Information on executive status of corrective actions set by the EITI
Board can be found in Annex 3.
April, 2015 The Coalition of Azerbaijan Non-government Organizations for “Improving Trans-
parency in Extractive Industries” (NGO Coalition) held roundtables in regions with
the support of the World Bank and State Oil Fund of the Republic of Azerbaijan
(SOFAZ) in Shirvan, Neftchala and Gadabay. The events were held in order to in-
form and increase awareness of citizens, representatives of civil society, local au-
thorities and communities (Work Plan 2015, action steps 6.6, 6.7).1
5
May 5, 2015 The meeting of the MSG on implementation of EITI in Azerbaijan with the partici-
pation of the executive director of the Natural Resource Governance Institute Dan-
iel Kaufmann was held at SOFAZ.
June 30, 2015 2014 EITI Annual Activity Report was published (Work Plan 2015, action step 4.17)
July 16, 2015 2013 EITI Report was approved by the MSG and disclosed. The report was pre-
pared under the new EITI Standard’s requirements (Work Plan 2015, action step
1.4).
July 30, 2015 The training on improvement of professionalism in filling of EITI reports and in-
creasing of EITI report quality for the members of the MoU- local and foreign com-
panies operating in mining field was held at SOFAZ. Members of NGO Coalition
also participated at the training (Work Plan 2015, action step 3.2).
September 18,
2015
In the framework of “public support for improving transparency in extractive in-
dustries” project financially supported by the Council of State Support to Non-Gov-
ernmental Organizations under the Auspices of the President of the Republic of
Azerbaijan (CSSN) the NGO Coalition held the workshop on “The compliance of
the EITI Report 2013 of Azerbaijan with EITI Standard’s requirements” at SOFAZ.
The workshop was organized in order to raise NGO Coalition members’ awareness
about EITI implementation in Azerbaijan (Work Plan 2015, action step 6.6).
September 22,
2015
The NGO Coalition Council held a meeting with the participation of Dyveke Rogan
(the representative of the EITI International Secretariat) and the representatives of
NGO Coalition. During the meeting the progress on situation of civil society in
Azerbaijan was discussed.
6
September
23, 2015
The workshop on “Validation – corrective actions and action steps for the compliant
status” with the participation of the representative of EITI International Secretariat
Dyveke Rogan and MSG members was held at SOFAZ Tower. The aim of the work-
shop was to broadly discuss actions steps which should be undertaken for restoration
of the EITI Compliant status of Azerbaijan.
September
29-30, 2015
In the framework of “public support for improving transparency in extractive indus-
tries” project financially supported by the CSSN the EITI NGO Coalition held public
debates on “The EITI aim, implementation and the use of outcomes” in Siyazan and
Salyan (Work Plan 2015, action step 6.7).
September
29, 2015
Head of the Azerbaijan EITI Secretariat Farid Farzaliyev participated as a speaker at
the “7th International Conference on improvement of the EITI in Kazakhstan” in
Astana, Kazakhstan (Work Plan 2015, action step 6.4).
October 8,
2015
The President of the Republic of Azerbaijan received the Chair of the International
Board of the EITI Clare Short. At the meeting were exchanged views on prospects of
Azerbaijan`s participation in EITI.
7
The Chair also had meeting with the members of EITI NGO Coalition. At the meeting
was discussed the status of the Civil Society and current situation in the EITI of Azer-
baijan.
October 8,
2015
The meeting of the MSG on implementation of EITI in Azerbaijan with the participa-
tion of the chair of the International Board of the EITI Clare Short was held at SOFAZ
October
13-15, 2015
Head of the Azerbaijan EITI Secretariat Farid Farzaliyev and two members of the
MSG Azerbaijan were participated at regional workshop for the National Coordina-
tors and MSG members in Istanbul, Turkey (Work Plan 2015, action step 6.4).
October 20,
2015
In the framework of “public support for improving transparency in extractive indus-
tries” project financially supported by the CSSN the EITI NGO Coalition held the
workshop on “The EITI aim, implementation and use of outcomes” at the Azerbaijan
State University of Economics. The workshop aimed to raise awareness of youth on
EITI process (Work Plan 2015, action step 6.6).
8
October
21-22, 2015
The 30th EITI Board meeting was held in Berne, Switzerland. Delegation headed by
the Chairman of the National EITI Commission, a member of the EITI International
Board and the Executive Director of the SOFAZ Shahmar Movsumov participated
at the meeting. Appropriate discussions were conducted and decisions were made
at the meeting (Work Plan 2015, action step 6.4).
October-No-
vember, 2015
NGO Coalition held series of on-line TV debates on different topics such as “2013
EITI Report: achievements and challenges”, “EITI and Azerbaijan”, “Role of civil
society in EITI implementation” and “State Oil Fund”. 2 TV Programs on EITI were
broadcasted in regional TV channels of Sumgayit, Ganja and Guba.
November 12,
2015
Newly established company in Azerbaijan SGC Upstream signed the Instrument of
Accession to MOU. By signing the Instrument of Accession to MOU SGC Upstream
was submitted the 19th EITI report (2014 EITI report) on payments to the govern-
ment of Azerbaijan. Thereby, 39 extractive sector companies joined Memorandum
of Understanding on implementation of the EITI in Azerbaijan.
2 https://www.youtube.com/watch?v=f9llm4JFMuY
https://www.youtube.com/watch?v=26YxplXJbqo
https://www.youtube.com/watch?v=_nwoFJnO2RY
https://www.youtube.com/watch?v=lFF-MiHWl1w
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November 23,
2015
The roundtable of the presentation EITI NGO Coalition’s opinion on the 2013 EITI
Report was held by the EITI NGO Coalition with the support of the CSSN. The event
was held for the representatives of governmental organizations, international or-
ganizations, embassies, civil society institutions and mass media (Work Plan 2015,
action steps 4.13 and 6.1).
November,
2015 The regional conference dedicated to the first national report of Tajikistan on its EITI
implementation and the development of the regional cooperation was held in Du-
shanbe, Tajikistan. The representatives of Azerbaijan EITI Secretariat participated in
that conference and shared Azerbaijan’s EITI experience (Work Plan 2015, action
step 6.4).
December 9-
10, 2015
The 31st EITI Board meeting was held in Kiev, Ukraine. Delegation headed by the
Chairman of the EITI Commission, a member of the EITI International Board and
the Executive Director of the SOFAZ Shahmar Movsumov participated at the meet-
ing. (Work Plan 2015, action step 6.4).
10
Assessment of performance against targets and activities set out in the WORK PLAN
2015
Objectives/Targets Progress
1. EITI Reporting
Informing the public about revenues from extractive
industries, enhancing the content and increasing the
volume of EITI reports, increasing benefits and eas-
ing the use of the EITI data
EITI Report 2013
The EITI Report 2013 was the first report prepared under the EITI Stand-
ard 2013. Thus, it reflected huge amount of new information required un-
der the Standard. Information on share of extractive industries in the dif-
ferent indicators of the economy, state participation in extractives, and
broad information on PSAs was disclosed to public in 2013 EITI Report.
One more remarkable feature of the report was a transition to disaggre-
gated reporting which gave a chance to public to obtain company-by-
company data through EITI reports. The 2013 EITI Report of Azerbaijan
was the first report validated under the new Standard.
By the time of Validation the report was a draft and was improved by the
Working Group and Independent Administrator according to recommen-
dations of the Validator and International Secretariat after Validation. Fi-
nal report was approved by the MSG and disclosed in July 2015.
The NGO Coalition gave quite comprehensive opinion on 2013 EITI Re-
port. The Opinion was presented in the roundtable held by the EITI NGO
Coalition with the support of CSSN.
EITI Report 2014
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The 2014 EITI Report was prepared on the basis of lessons learnt from
2013 Report as well as taking into account recommendations of the Vali-
dator and NGO Coalition in close cooperation with the EITI International
Secretariat. Some important chunks of information required by the Stand-
ard such as, license register and allocation, relations between SOEs and
the government as well as between SOEs and their joint venture, sale of
the state’s share of production were included into the report. Some addi-
tional information on employment in the extractive sectors, value of the
commodities by region, foreign purchasers of the profit oil, and scheme of
the state budget was reflected in the report in accordance with the Coali-
tion’s Opinions.
Another novelty with 2015 EITI reporting was preparation of summary
reports. Works on EITI Summary Report has started in the end of 2015
and finalized in 2016.
Both reports were actively disseminated among population by mainly on-
line sources (web-sites of the Azerbaijan EITI, State Oil Fund and NGO
Coalition). Hard copies of the reports were distributed among civil society
members and local communities through NGOs. The reports of the gov-
ernment for 2013 and 2014 were published in the state newspapers.
Uncompleted action steps:
First group of uncompleted action steps are related to printing of 2013
EITI Report in professionally designed version. (1.11-1.12) Plan. This de-
lay was observed due to long-lasting review and improvement process of
the report after Validator’s comments. These steps were included to the
2016 EITI Work
Second group of uncompleted action steps are related to approval of the
2014 EITI Report and other following steps (4.9-4.13, 4.18-5.1). This delay
12
is originated from delays in the production of 2013 EITI Report. All sub-
stantial works are completed in 2015 and the report was approved in the
very beginning of 2016. The rest of the activity steps were included to
2016 EITI Work Plan.
2. Validation.
Preserving the compliant membership status of
Azerbaijan
Validation officially started in January 1 in Azerbaijan. In February 13
MSG gathered together to discuss initial findings of the Validation with
the Validators. By February 27 Validator collected all comments from EITI
stakeholders and in March 6 submitted the final Validation report to the
MSG and Board. According to the assessment of the Validators Board
downgraded Azerbaijan’s EITI status and set corrective actions to be im-
plemented till the next Validation.
The MSG prepared Activity plan for the implementation of the corrective
actions right after the Board decision. Workshop on “Validation – correc-
tive actions and action steps for the compliant status” dated 23 September
member of the EITI International Secretariat Dyveke Rogan shed some
light on questions of the MSG about implementation of the corrective ac-
tions. Government and civil society continued a dialogue for resolving the
problems faced by NGOs. Every single progress in implementation of the
corrective actions in 2015 was recorded in the Activity plan by the EITI lo-
cal Secretariat.
3. Training
Enhancing competency of the companies in filling
out the EITI reporting templates and increasing qual-
ity of the EITI reporting
The training on improvement of professionalism in filling of EITI reports
and increasing of EITI report quality for the members of the local and for-
eign companies operating in mining field was held on July 30, 2015 at SO-
FAZ. This year members of the NGO Coalition in extractive industries also
participated at the training, as the seminar was initiated also to build an-
other floor where NGOs and companies could communicate directly.
Holding this kind of seminar did not give expected outcomes in terms of
raising professionalism of reporting staff as old mistakes were in place in
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the next reporting cycle. Working group on reporting and MSG widely dis-
cussed constraints and frequent rotations among responsible persons for
reporting and miscommunication within the company were considered as
the main causes of the ineffectiveness of the seminars. As a result of Work-
ing group and MSG discussions it was decided to conduct such seminar
before the reporting cycle starts. The Secretariat were closely cooperating
with companies to seek solutions to the problems.
4. EITI Data simplification
Improving readability and comprehensibility of the
EITI reporting
Increasing amount of data created a necessity to find out ways to manage
hundred-pages of EITI information effectively. Azerbaijan achieved to de-
liver the data in a more systematic way in the 2014 EITI Report. Still, MSG
is committed to take steps to improve the quality of the report by also
considering comments of the Coalition.
The 2014 EITI data is delivered to public through not only heavy EITI re-
ports, but also in the form of two different excel spreadsheets (one for the
EITI International Secretariat, the other for www.eiti.az), as well as sum-
mary reports which are placed on the official EITI Azerbaijan web-site.
5. Awareness raising
Raising public awareness about EITI implementa-
tion in Azerbaijan, promotion of EITI's general phi-
losophy and Azerbaijan's EITI report, exchange of
experiences with other countries
For the year 2015 below mentioned events were held for raising public
awareness about EITI:
Representatives of the Civil Society participated in training on im-
provement of professionalism in filling of EITI reports and increas-
ing of EITI report quality for the members of the local and foreign
companies operating in mining field;
NGO Coalition held series of roundtables in regions supported by
the World Bank and SOFAZ in Shirvan, Neftchala and Gadabay. The
events were held in order to inform and increase awareness of citi-
zens, representatives of Civil Society and local communities;
The EITI NGO Coalition held the workshop on “The compliance of
the EITI Report 2013 of Azerbaijan with EITI Standard’s require-
14
ments” on September 18, 2015 at SOFAZ. The workshop was orga-
nized in order to raise NGO Coalition’s members awareness about
EITI implementation in Azerbaijan;
The NGO Coalition held public debates in Siyazan and Salyan on
“The EITI aim, implementation and the use of outcomes” in the
frame of “public support to the improving transparency in extrac-
tive industries”;
EITI NGO Coalition’s opinion on the 2013 EITI Report was pre-
sented at a roundtable held by the EITI NGO Coalition with the
support of CSSN. The event was held for the representatives of
governmental organizations, international organizations, embas-
sies, civil society institutions and mass media;
On October 20, 2015 at the Azerbaijan State University of Econom-
ics the EITI NGO Coalition held the workshop on “The EITI aim,
implementation and use of outcomes”.
NGO Coalition held series of TV debates on different topics such as
“2013 EITI Report: achievements and challenges”, “EITI and Azer-
baijan”, “Role of civil society in EITI implementation” and “State
Oil Fund” in “Economic forum” program.
EITI stakeholders and members of the local Secretariat continued
to actively participate in different regional and international EITI
events sharing the practice of Azerbaijan in EITI implementation.
Uncompleted action steps:
NGO Coalition conducted a TV program on EITI broadcasted in 3
regional TV channels (Sumgayit, Ganja and Guba). However, conducting
a TV program and discussing EITI Report outcomes in central TV
channels was incompleted in 2015. It was due to weak financial capacity
of NGO Coalition and weak relations with central TV channels. The ac-
tion step was shifted to 2016 Work Plan.
15
6. Improving of MSG effectiveness
Improving management, increasing reporting and
transparency on MSG's activity
The EITI Secretariat prepared a report on status of implementation of MSG
decisions in 2015 and presented it to the MSG.
Uncompleted action steps:
Draft Code of Conduct had been drafted by NGO Coalition and presented
to the MSG. It includes the resolution of conflict of interest among MSG
members. The document was edited by the Group of Companies and dis-
seminated within all EITI parties for final approval. The approval of the
Code of Conduct was shifted to Work Plan 2016.
Impact of the EITI implementation in Azerbaijan
The EITI stakeholders of Azerbaijan identify two major positive impact of the EITI implementation in the country:
- Fruitful policy dialogue among government, companies and civil society. These three parties have gathered around a table
to formulate policies and make decisions. Thus, the EITI made a difference in the sector and brought about new type of pol-
icy-making to the country.
- Trust to the government and companies in the extractive sectors. Before the EITI has been implemented in Azerbaijan, both
civil society and media had a lot of questions regarding the revenues coming from extractive sectors. Tons of articles were
being published during that period on inappropriate use of revenues, corruption and bribery. The EITI dropped this kind of
issues from the agenda by promoting transparency and accountability in extractive industry revenues.
16
Assessment of performance against requirements of EITI
Standard 2013
3 Order of the Cabinet of Ministers of the Republic of Azerbaijan on November 30, 2006: http://www.eiti.az/in-
dex.php/en/senedler-2/ordinance2/270-ordinance-of-the-cabinet-of-ministers-of-the-republic-of-azerbaijan-224 4 Latest composition of MSG: http://www.eiti.az/index.php/en/mhsht-ve-azerbaycan-2/multi-stakeholder-group;
Meorandum of Understanding: http://www.eiti.az/index.php/en/senedler-2/memorandum
REQUIREMENTS PROGRESS
1. The EITI requires effective oversight by the multi-stakeholder group.
1.1 The government is required to
issue an unequivocal public state-
ment of its intention to implement
the EITI.
Statement of Ilham Aliyev, First Vice President of
SOCAR, spoke on behalf of the Azerbaijan Govern-
ment.
In his meeting with former EITI chair Clare Short he re-
affirmed government’s commitment to implement EITI
and instructed EITI Commission to ensure that all out-
standing issues are resolved.
1.2 The government is required to
appoint a senior individual to lead
the implementation of the EITI.
The Executive Director of the State Oil Fund of the Re-
public of Azerbaijan was appointed by the Order of the
Cabinet of Ministers of the Republic of Azerbaijan on
November 30, 2003 for leading the EITI process in the
country.3
1.3 The government is required to
commit to work with civil society
and companies, and establish a
multi-stakeholder group to over-
see the implementation of the EITI.
The MSG for implantation of EITI was established in
2010 based on recommendations of the Validators.
MSG conducts its work in accordance with the Memo-
randum of Understanding signed by all EITI parties.4
The MoU reflect all the information required in the
1.3.g of the Standard
All EITI parties are fully involved in the EITI process.
Parties have equal access to the MSG. Decisions of the
MSG are made on consensus basis which gives an
equal right to each party in the decision making pro-
cess. Agendas of the meetings are sent to MSG mem-
bers at least 3 days ahead of the meeting and members
have a right to propose any issue for the inclusion to
the agenda.
17
5 2015 EITI Work Plan: http://www.eiti.az/index.php/en/senedler-2/work-plan-for-implementation-of-eiti/577-
2014-work-plan-for-implementation-of-eiti-2
1.4 The multi-stakeholder group is
required to maintain a current
work plan, fully costed and
aligned with the reporting and
Validation deadlines established
by the EITI Board.
Annual work Plan for 2015 was prepared under the re-
quirements 2013 EITI Standard. Deadlines, budget, re-
sponsible parties and expected outcomes were reflected
in the Work Plan.5 MSG and local Secretariat worked
on linking objectives of the Work plan to national prior-
ities. In close cooperation and consultation with Inter-
national Secretariat 2016 Work Plan was prepared fully
addressing all requirements set in the Standard.
1.5 Adapted implementation Not applicable
1.6 EITI reporting and Validation
deadlines
2013 EITI Report was disclosed on July 16, 2015. Vali-
dation issues were completed on March, 2015 in Azer-
baijan.
1.7 Suspension Not applicable
1.8 Delisting Not applicable
1.9 Appeals Not applicable
2. The EITI requires timely publication of EITI Reports.
2.1 Implementing countries are re-
quired to produce their first EITI
Report within 18 months of being
admitted as an EITI Candidate.
Thereafter, implementing coun-
tries are expected to produce EITI
Reports on an annual basis.
All EITI reports of Azerbaijan are disclosed to public in
a timely manner without any delay. 2015 was not an
exception. Azerbaijan met deadlines set in the EITI
Standard for publication of EITI reports.
2.2 EITI Reports must cover data
no older than the second to last
complete accounting period, e.g.
an EITI Report published in calen-
dar/financial year 2014 must be
based on data no later than calen-
dar/financial year 2012. Multi-
stakeholder groups are encour-
aged to explore opportunities to
publish EITI Reports as soon as
practically possible. In the event
that EITI reporting is significantly
18
6 EITI reports: http://www.eiti.az/index.php/en/reports
delayed, the multi-stakeholder
group should take steps to ensure
that EITI Reports are issued for the
intervening reporting periods so
that every year is subject to report-
ing.
2.3 The multi-stakeholder group is
required to agree the accounting
period covered by the EITI Report.
In 2010 MSG decided to transit from “semiannual and
annual reporting” to “annual reporting” in EITI until
any new decision is made by the MSG
3. The EITI requires EITI Reports that include contextual information about the extractive
industries.
3.1 Compiling contextual infor-
mation.
According to MSG decision in 2014, an Independent
Administrator responsible for the reconciliation of the
EITI data was also requested to collect contextual infor-
mation. Special Working group for EITI reporting (con-
sists of MSG members and local Secretariat members)
was also working in cooperation with Independent Ad-
ministrator in collecting required information.
3.2 The EITI Report must describe
the legal framework and fiscal re-
gime governing the extractive in-
dustries.
Information on legal framework and fiscal regime
about extractive industries was included to the EITI Re-
ports 2013 (pages 43-45)and improved in EITI Report
20146 (pages 16-19)
3.3 The EITI Report should pro-
vide an overview of the extractive
industries, including any signifi-
cant exploration activities.
General information on mining industries, including
significant exploration activities was included to the
EITI Report 2013 (pages 47-54) and EITI Report 2014
(pages 24-29)
3.4 The EITI Report must disclose,
when available, information about
the contribution of the extractive
industries to the economy for the
fiscal year covered by the EITI Re-
port.
Contribution of the extractive industries containing
share of extractives in GDP, in state budget, in export,
in employment and in capital investments was in-
cluded in the EITI Report 2013 (pages 55-61) and EITI
Report 2014 (page 30-36)
3.5 The EITI Report must disclose
production data for the fiscal
year covered by the EITI Re-
port, including:
a) Total production volumes and
the value of production by
The production data can be found in 2013 EITI Report
(pages 58-61) and 2014 EITI Report (pages 31-32)
19
commodity, and, when rele-
vant, by state/region
b) Total export volumes and the
value of exports by commod-
ity, and, when relevant, by
state/region of origin.
3.6 Where state participation in the
extractive industries gives rise to
material revenue payments, the
EITI Report must include:
a) An explanation of the prevailing
rules and practices regarding the
financial relationship between the
government and state-owned en-
terprises (SOEs), e.g. the rules and
practices governing transfers of
funds between the SOE(s) and the
state, retained earnings, reinvest-
ment and third-party financing.
b) Disclosures from SOE(s) on
their quasi-fiscal expenditures
such as payments for social ser-
vices, public infrastructure, fuel
subsidies and national debt servic-
ing. The multi-stakeholder group
is required to develop a reporting
process with a view to achieving a
level of transparency commensu-
rate with other payments and rev-
enue streams, and should include
SOE subsidiaries and joint ven-
tures.
c) Disclosures from the govern-
ment and SOE(s) of their level of
beneficial ownership in mining, oil
and gas companies operating
within the country’s oil, gas and
mining sector, including those
held by SOE subsidiaries and joint
ventures, and any changes in the
Detailed information on financial relationship between
the government and SOEs, level of beneficial owner-
ship and SOCAR’s quasi-fiscal expenditures was in-
cluded to EITI Report 2013 (pages 61-67)and EITI Re-
port 2014 (pages 37-45)
20
7 On-line PSA register: http://www.eiti.az/index.php/en/senedler-2/registration-of-licenses
level of ownership during the re-
porting period. This information
should include details regarding
the terms attached to their equity
stake, including their level of re-
sponsibility to cover expenses at
various phases of the project cycle,
e.g. full-paid equity, free equity,
carried interest. Where there have
been changes in the level of gov-
ernment and SOE(s) ownership
during the EITI reporting period,
the government and SOE(s) are ex-
pected to disclose the terms of the
transaction, including details re-
garding valuation and revenues.
Where the government and SOE(s)
have provided loans or loan guar-
antees to mining, oil and gas com-
panies operating within the coun-
try, details on these transactions
should be disclosed in the EITI Re-
port.
3.7 The EITI Report must describe
the distribution of revenues from
the extractive industries.
Structure of SOFAZ revenues was included to EITI Re-
port 2013 (page 68) and EITI Report 2014 (page 45)
3.8 The multi-stakeholder group is
encouraged to include further in-
formation on revenue manage-
ment and expenditures in the EITI
Report
According to the MSG decision, implementation of the
EITI Standard started from the fulfillment of the re-
quirements and only after full compliance with the re-
quirement MSG will consider the implementation of
the encouragements.
Nevertheless, 5 PSAs are disclosed on www.eiti.az
3.9 Registration of licenses
On-line register of PSAs is available on EITI Azerbaijan
website.7 2014 EITI Report includes the link to this doc-
ument (page 46).
3.10 Allocation of licenses Detailed information was included into 2014 EITI re-
port (page 46).
21
8Disclosed PSAs: http://www.eiti.az/index.php/en/senedler-2/agreements
3.11 Beneficial ownership
SOCAR disclosed its level of beneficial ownership in oil
and gas companies within and outside the country and
changes in the level of beneficial ownership in 2014
EITI Report
3.12 Contracts
Negotiations continue with companies to get their
agreement for disclosing PSAs. 5 PSAs are published
on EITI Azerbaijan official web-site.8
4. The EITI requires the production of comprehensive EITI Reports that include full gov-
ernment disclosure of extractive industry revenues and disclosure of all material pay-
ments to government by oil, gas and mining companies.
4.1 Defining the taxes and reve-
nues to be covered in the EITI Re-
port
MSG has decisions on payments to be covered in the
EITI Report in its different meetings over the last years.
In 2015 there were no change to the list of material pay-
ments according to researches of the MSG.
4.2 Defining which companies and
government entities are required
to report
Based on scoping studies of local Secretariat 39 extrac-
tive companies which made payments to government
in 2014 identified and all of them reported.
There were no change in the list of reporting govern-
mental agencies.
5. The EITI requires a credible assurance process applying international standards.
5.1 Appointment of the Independ-
ent Administrator
In 2011, with the support of the State Oil Fund MSG
held a bidding process of the Independent Administra-
tor for preparation of the EITI Reports for 2012, 2013
and 2014. Moore Stephens audit firm won the bidding
process and a 3-year-contract was signed between SO-
FAZ and Moore Stephens.
5.2 Agreement of Independent Ad-
ministrator’s Terms of Reference
Independent Administrator’s Terms of Reference was
firstly prepared for 2013 and 2014 years in accordance
with the Standard Terms of Reference endorsed by the
EITI Board (prior to Standard ToR had been prepared
in accordance with standard template for bidding in
legislation). The ToR includes provisions on reviewing
audit and assurance practices, agreeing on assurances
provided by the reporting entities and level of dis-
aggregation.
22
9 EITI Work Plans: http://www.eiti.az/index.php/en/senedler-2/work-plan-for-implementation-of-eiti, press re-
leases: http://www.eiti.az/index.php/en/2015-2/581-mhst-iclas-2072019, http://www.eiti.az/index.php/en/2016-
2/600-mhst-iclas-42 10 http://www.xalqqazeti.com/az/news/ads/60687 http://www.eiti.az/index.php/en/2015-2/581-mhst-iclas-2072019 11 For more detailed information see “Assessment of performance against targets and activities set out in the work
plan”, 5.Awareness raising
5.3 Assessment and recommenda-
tions from the Independent Ad-
ministrator
2013 and 2014 EITI reports reflect Independent Admin-
istrator’s assessment of reported data and identified
discrepancies. Starting form 2013 EITI Reports IA pro-
duces electronic data files as per EITI requirements. It
also assesses the reliability of the data with spot checks
in randomly selected reporting companies in accord-
ance with the MSG decision. The reports highlight that
all companies and government agencies within the
agreed scope have reported and their financial state-
ments are audited. Both reports are followed by the IA
recommendations for the next reporting cycles.
5.4 The multi-stakeholder group
should endorse the EITI Report prior
to its publication.
Both 2013 and 2014 EITI Reports were endorsed by the
MSG at their meetings.9
6. The EITI requires EITI Reports that are comprehensible, actively promoted, publicly
accessible, and contribute to public debate.
6.1 The multi-stakeholder group
must ensure that the EITI Report is
comprehensible, actively promoted,
publicly accessible and contributes to
public debate.
2013 and 2014 EITI reports are produced in paper cop-
ies and distributed among civil society organizations,
companies and media. They are also available online at
www.eiti.az. Public was informed about the availability
of reports through state newspaper and press-re-
leases.10 IA and Working Group worked a lot for pro-
ducing comprehensible and easily graspable EITI re-
ports. Recommendations of the NGO Coalition were
also reviewed in the course of work.
53 articles were published in most visited online media
(excluding web-sites of EITI Azerbaijan, SOFAZ and
NGO Coalition) throughout 2015.
The outreach events undertaken to spread awareness
are summarized below:11
23
- NGO Coalition held series of roundtables in re-
gions with the support of World Bank and SO-
FAZ in Shirvan, Neftchala and Gadabay.
- The EITI NGO Coalition held the workshop on
“The compliance of the EITI Report 2013 of
Azerbaijan with EITI Standard’s requirements”
to 30 Coalition members on September 18, 2015
at SOFAZ.
- The NGO Coalition held public debates on “The
EITI aim, implementation and the use of out-
comes” in Siyazan and Salyan;
- The roundtable of the presentation of the EITI
NGO Coalition’s opinion on the 2013 EITI Re-
port was held by the EITI NGO Coalition with
the support of CSSN.
- On October 20, 2015 the EITI NGO Coalition
held the workshop on “The EITI aim, implemen-
tation and use of outcomes” at the Azerbaijan
State University of Economics.
- On October 18, 2015 the NGO Coalition held 4
on-line TV debates (one was devoted to 2013
EITI report) in “Economic forum” program (total
424 views). A TV program on EITI was broad-
casted in 3 regional TV channels: Sumgayit,
Ganja and Guba (2.5 mln population)
6.2 The multi-stakeholder group is
encouraged to make EITI Reports
machine readable, and to code or tag
EITI Reports and data files so that the
information can be compared with
other publicly available data.
The preparation of the summary report of the 2014 EITI
Report was substantially finalized in 2015 and the re-
port was printed in 2016. Secretariat has been prepar-
ing electronic data files in excel spreadsheets and plac-
ing them at www.eiti.az starting from 2013 EITI Report.
7. The EITI requires the multi-stakeholder group to take steps to act on lessons learnt
and review the outcomes and impact of EITI implementation.
7.1 The multi-stakeholder group is
required to take steps to act upon les-
sons learnt; to identify, investigate
and address the causes of any dis-
Prior to and in the course of each reporting cycle MSG
and Working Group intensively works on recommen-
dation of not only AI but also NGO Coalition.
24
crepancies; and to consider recom-
mendations for improvement from
the Independent Administrator.
7.2 The multi-stakeholder group is
required to review the outcomes and
impact of EITI implementation on
natural resource governance.
Annual Activity reports are produced periodically
without any delay and in accordance with all provi-
sions of EITI Standard. All stakeholder were given ac-
cess to draft Activity Report and giving a comment if
any through coordinator of each party and represent-
ing MSG members.
25
Overview of the MSG responses to the recommendations from
the Validation of EITI 2013 draft report and Reconciliation
Recommendations from the Validation
Recommendation Status/Progress
MSG oversight
The draft 2013 report should be updated
to include all missing information identi-
fied in this validation report required by
the 2013 Standard
The Independent Administrator and the Working
Group improved the 2013 EITI Report by Valida-
tor’s recommendations and the MSG approved the
report on July 16, 2015
The NGO Coalition should formally apply
to register with the Ministry of Justice
The issue on registration of the NGO Coalition was
raised in the meeting of the NGO Council and
General Assembly and the members did not reach
an agreement due to diverse views. However, it
was decided that next Council should investigate
legal and regulatory framework and assess neces-
sity of the registration. As a result of these studies
the Council should prepare proposal till the next
General Assembly.
The Government of Azerbaijan (GoAZ)
should facilitate the registration of the
NGO Coalition if and how required and
provide capacity building support on fi-
nancial management
The government have always supported the regis-
tration of the NGO Coalition and believed that this
will ease the financial management of the Coali-
tion. However NGO Coalition decided not to regis-
ter as a single entity in the Ministry of Justice.
A funding mechanism for the NGO Coali-
tion should be agreed with CSSN, to ena-
ble fulfilment of CSO components of an-
nual work plans
In March 2015 CSSN defined “State support to EITI
process” as one of the priority directions for the
allocation of grants. As a result, 6-month-project of
Coalition “Public support for improving transpar-
ency in extractive industries” won grant amounted
17.000 AZN. Activities done within the framework
of the project:
- Workshop on “The EITI aim, implementa-
tion and use of outcomes” at the Azerbaijan
State University of Economics
26
- Public debates on “The EITI aim, implemen-
tation and the use of outcomes” in Siyazan
and Salyan
- 4 online TV programs (Economic forum)
dedicated to EITI and natural resource gov-
ernance (424 views in total). The programs
were also broadcasted in regional TV chan-
nels of Sumgayit, Ganja and Guba (2.5 mln
population)
- Capacity building training for NGO mem-
bers on new EITI Standards.
The review of frozen NGO bank accounts
should be fast tracked, and the results
made publicly available
3 out of 6 frozen bank accounts of Coalition mem-
bers are unfrozen after negotiations during 2015.
Unblocking all frozen accounts of Coalition mem-
bers was completed in the first half of 2016. 12
The MSG should consider developing a
transparency and accountability strategic
framework that shapes medium to long
term thinking, going beyond the mini-
mum requirements of the EITI 2013 Stand-
ard
Azerbaijan considers to mainstream EITI into rou-
tine reporting practices of government agencies
and companies. Benefits of mainstreaming that
MSG defined are:
- Achieving sustainable EITI reporting prac-
tice
- Timely and accessible EITI data
- Avoiding overlapping reporting practices
- Saving of resources (money, time, human)
- Easily searchable and comparable EITI data
Preliminary discussions were held for further reali-
zation of the ideas around mainstreaming.
Financial support should be provided to
implement (and develop) the 2015-18
NGO Coalition Strategic Plan (Secretariat,
capacity-building, project support), build-
ing on existing World Bank support
The document prepared by the NGO Coalition is
more of analyzing nature rather than Strategy
Plan. It includes stakeholder and SWOT analysis.
Giving all these, no financial support was allocated
to this direction.
The MSG consider setting up an online au-
tomated continuous reporting system and
web-based reporting templates to reduce
the cost of reporting
The local Secretariat is working on application of
EITI e-reporting. Best practices of EITI implement-
ing countries have been examined and further con-
sultations with World Bank are in progress.
The work plan should be updated to re-
flect best practice
2016 EITI Work Plan was updated based on Vali-
dator recommendations as well as EITI Standard.
12 Press-release: http://oxu.az/society/125841
27
EITI disclosures
The IA should provide further details and
explanations around licenses, reforms and
laws as outlined in the summary table and
detailed in the report
On-line register of PSAs is available on EITI Azer-
baijan website. 2014 EITI Report includes the link
to this document.
Detailed information on license allocation and laws
can be obtained in 2014 EITI Report.
More information should be disclosed
about PSAs, including the location of all
active PSAs on a publically available web-
site
Negotiations continue with companies to get their
agreement for disclosing PSAs. 5 PSAs are pub-
lished on EITI Azerbaijan official web-site.
Going forward, disclosures of beneficial
ownership should be considered and dis-
cussed by the MSG
Discussion around beneficial ownership disclosure
has started from 2016. Special legal firm was as-
signed to prepare beneficial ownership roadmap
after a bidding process.
The 2013 EITI final report should include
information on exploration activities
Information on exploration activities was added to
2014 EITI Report
The MSG should ensure the 2013 EITI final
report includes information and data re-
lated to unmet provisions outlined in this
document
MSG ensured that all information required by the
EITI Standard, outlined by the Validator and possi-
ble to disclose considering time constraints was in-
cluded to the 2013 Report.
The MSG should review the definition on
materiality and specifically ensure that
material revenue streams are comprehen-
sively covered by the final EITI report and
an appropriate level of disaggregation is
provided by government departments
and companies
MSG reviewed and determined material revenue
streams and disaggregation level several times at
MSG meetings held in 9 April 2012 and 30 January
2013. Different amendments due to changes in in-
ternational requirements and local circumstances
were also made to determined material payments.
The MSG should consider including the
encouraged provisions in the next EITI re-
port
According to the MSG decision, implementation of
the EITI Standard started from the fulfillment of the
requirements and only after full compliance with
the requirement MSG will consider the implemen-
tation of the encouragements. The rationale of this
kind of decision was the intention to effectively use
financial, time and human resources. MSG admitted
that new Standard requires allocation of huge re-
sources and raises a lot of questions that were never
reviewed before. Therefore, MSG decided at first
stage to direct all resources to the fulfillment of re-
quirements and after full compliance with the re-
quirements to proceed with recommendations.
28
Nevertheless, in the past years MSG has also put ef-
forts to broaden EITI implementation in the coun-
try. MSG sent letters to companies several times to
get their consent to disclose PSA texts and achieved
publishing 5 PSAs at www.eiti.az. MSG seeks other
ways to disclose rest of the PSAs.
MSG has also launched discussions with World
Bank to mainstream EITI in government and com-
panies’ reporting routine. As a part of preliminary
discussions it is planned to start with developing
comprehensive action plan which will basically in-
clude feasibility studies, actions to strengthen legal
basis, to embed EITI to the government’s statistical
structure, to create a new portal for the transition to
e-reporting etc. The EITI Secretariat and MSG will
closely work with the WB throughout the project
implementation.
Companies operating in Azerbaijan pays manda-
tory social payments to the government. MSG de-
cided to include total amount of these payments to
the EITI Report even though it is neither required
nor encouraged by the Standard.
The MSG should include details on quasi
fiscal revenue and expenditure in the final
2013 report
Further information on quasi-fiscal expenditures of
SOCAR was included to the 2013 EITI Report. Af-
terwards, NGO Coalition made a research on
quasi-fiscal expenditures of SOCAR and presented
it before MSG. As per decision of MSG, some ex-
tracts from the research were included to the 2014
EITI Report.
The MSG should include details on rele-
vant social expenditure in the final 2013
report
Material social expenditures by companies are not
mandated by law or the contract in Azerbaijan.
Thus, it is not applicable.
Outcomes and Impact
The IA should place emphasis on ensuring
the language in the final report is compre-
hensible and accessible
IA and Working Group worked a lot for producing
comprehensible and easily graspable EITI reports.
Recommendations of the NGO Coalition on re-
structuring the report were also reviewed in the
course of work.
29
The MSG should organize further out-
reach events, and ensure the NGO Coali-
tion members have access to funding to
ensure they can report to the general pub-
lic
MSG organized outreach events and NGO Coali-
tion held different events on EITI in 2015.13
Besides abovementioned, coordinator of NGO Co-
alition held 8 meetings with the chairman of the
EITI Commission and 7 meetings in Presidential
Administration. Throughout the year State Sup-
port for NGOs allocated grants amounted 193.000
AZN to different projects of the 32 Coalition mem-
ber organizations.
One member organization of the Coalition got a
grant for the project related to defense of rights of
extractive industry workers from international do-
nor (EEP- European Endowment for Democracy)
13 For more detailed information see “Assessment of performance against targets and activities set out in the work
plan”, 5.Awareness raising
30
Reconciliation’s recommendations
Recommendation Status/Progress
Notifying and informing the companies
that produce erroneous reports on a regu-
lar basis
Companies were informed about their mistakes
and errors in previous reporting at the seminar
held on July 30 2015.
Seminars and training should be orga-
nized for the participants of the reconcili-
ation process
The training has been organized in July 2015 prior
to commencement of the reconciliation process,
which covered the topics in relation to the new
EITI requirements.
The companies and government agencies
should undertake necessary steps to en-
sure that reports submitted by extractive
companies and government agencies are
certified by an independent external audi-
tor. It will decrease the number of errors
made by the companies during the sub-
mission of reporting templates each year
It was agreed with the MSG to consider the credibil-
ity of data and included in the TOR. The credibility
of the information has been agreed to be signed-off
by a senior company and government official who
gives assurance that the figures are complete and
accurately recorded. The companies within the ex-
tractive industry will be requested to provide an ad-
ditional letter from their external auditors on the
completeness and accuracy of the figures included
in the reporting templates.
31
SWOT analysis of EITI implementation in 2015
Strengths
- Increase in a number of awareness-raising events and ex-
pansion of them to the regions of Azerbaijan
- Achieving full disclosure of license register
- Involvement of CSSN to financing of some EITI projects
of Coalition
- One more extractive company joined the Initiative in
2015. Thus, Azerbaijan continued its full EITI disclosure
- Achieving disclosure of 5 PSA texts at www.eiti.az, be-
sides being compliant with EITI requirement
Opportunities
- Willingness of all EITI parties to continue cooperation
- Possibility of transition to e-reporting and mainstreaming
EITI reporting to disclosure practices of government and
companies
- Newly updated EITI Standard with new initiatives such
as disclosure on beneficial ownership in extractive indus-
tries
Weaknesses
- Financial and logistical limitations of Coalition to imple-
ment the activities in the Work Plan
- No agreement within Coalition to register as a legal en-
tity
- Low public interest in Initiative, low activity in social
media
- Weak relations with central TVs
- Weak regional engagement in EITI
- Non-regular trainings to increase the knowledge and
skills of coalition members
- Decrease in production of methodological facilities
- Lack of EITI legal framework
Threats
- Security challenges in the region
- Suspension of Azerbaijan from EITI
- Open government partnership decision on inactive
membership of Azerbaijan
- No cancellation of changes made to Law on “Grants”.
32
Expenditures of Azerbaijan EITI Secretariat
Components Amount (AZN)
Printing 6 785.00
Business travels 14 190.80
Preparation of EITI Report 38 778.70
Translation 1974.00
Total 59754.50
Note: All costs of EITI Secretariat are covered by the State Oil Fund
33
The members of Multi-Stakeholder Group in 2015
EITI Commission
Shahmar Movsumov The Executive Director of SOFAZ, the chairman
of the EITI Commission, MSG chairman
Iftikhar Huseynov Representative of Ministry of Energy
Zaur Fatizadeh Representative of Ministry of Taxes
Shahmirza Safarov Representative of Ministry of Ecology and Natu-
ral Resources (alternate)
Group of Companies
Tamam Bayatly Representative of “BP”
Nargiz Mehdiyeva Representative of “Statoil”
Kamran Maharramov Representative of the State Oil Company of the
Azerbaijan Republic (SOCAR)
Bakhtiyar Akhundov Representative of “Chevron” (alternate)
Rasim Akhundov Representative of “Total” (alternate)
Vagif Abdullayev Representative of “Neftechala” company (alter-
nate)
ITEI Coalition
Rafiq Tamrazov Public Union Centre of Equal Opportunities
Alimammad Nuriyev “Constitution” Researches Fund
Sabit Bagirov Economic and Political Research Center
Zaur Akbar “Youth Club" Public Union”
Azer Mehtiyev “Support for Economic Initiatives” Public Union
Ilgar Huseynli Social Strategic Studies and Analytically Investi-
gations Public Union
Annex 1
34
Annual Work Plan 2015 Priorities for
2015
Action steps Estimated im-
plementation
date
Note Actual
imple-
menta-
tion
date
Responsi-
ble
party/ies
Funding
source
Allo-
cated
funds
Im-
ple-
men-
tation
status
Capac-
ity con-
straints
Outcome
1. Preparation,
disclosure of the
EITI Report and
Activity Report
for 2013 in ac-
cordance with
the EITI Standard
and their publica-
tion in a single
document
2
013
EIT
I re
po
rt¹
1.1. Collect contextual
information
January 12 -
May 1
July 10 Secretar-
iat³, Audi-
tor⁴, MSG⁵
SOFAZ⁹ AZN
4.995
Com-
pleted
Not
exist
Informing the pub-
lic about revenues
from extractive in-
dustries, enhancing
the content and in-
creasing the vol-
ume of EITI re-
ports, increasing
benefits and easing
the use of the EITI
data
1.2. Discuss and ap-
prove contextual in-
formation
MSG No fund-
ing re-
quired
Com-
pleted
Not
exist
1.3. Approve the Au-
ditor's report
May 1-15 Upon im-
plementa-
tion of Ac-
tion 1.1-1.2
July 16 Auditor,
MSG
No fund-
ing re-
quired
Com-
pleted
Not
exist
1.4. Place the Govern-
ment's report, Audi-
tor's report and com-
panies' individual re-
ports on the websites
of the EITI Azerbai-
jan, SOFAZ, the Coa-
lition⁶ and the Inter-
national Secretariat
May 15-20 Within 3
days of im-
plementing
Action 1.3
July 20 Secretariat No fund-
ing re-
quired
Com-
pleted
Not
exist
1.5. Publish the Gov-
ernment's final report
in the official govern-
ment newspaper
August
6
Secretariat SOFAZ AZN
400
Com-
pleted
Not
exist
Annex 2
35
1.6. Present the NGO
Coalition's opinion
May 15 -June
15
Within one
month of
implement-
ing Action
1.3
Novem-
ber 23
Coalition No fund-
ing re-
quired
Com-
pleted
Not
exist
1.7. Place the report
figures on the EITI
website in the form of
a separate e-file
May 15-29 Within 14
days of im-
plementing
Action 1.3
Decem-
ber 30
MSG, Sec-
retariat
No fund-
ing re-
quired
Com-
pleted
Not
exist
1.8. Prepare/fill in
stadandart electronic
report drafted by the
International Secre-
tariat and submit it
back to the Secretar-
iat
Septem-
ber 9
Auditor,
Secretariat
No fund-
ing re-
quired
Com-
pleted
Not
exist
1.9. Prepare a sum-
mary of the EITI re-
port in order to main-
tain readability and
comprehensibility for
population consider-
ing the inclusion of
new information to
the report
June 20-22 Decem-
ber 25
MSG No fund-
ing re-
quired
Com-
pleted
Not
exist
1.10. Discuss the draft
document to be
printed, combining
EITI report and Ac-
tivity Report
June 15 - Au-
gust 3
Decem-
ber 25
MSG, Sec-
retariat
No fund-
ing re-
quired
Com-
pleted
Not
exist
1.11. Publish the EITI
report (2013) and the
Activity report (2013)
in a single document
Was in-
cluded to
the 2016
Work Plan
Secretariat SOFAZ Not
com-
pleted
Not
exist
36
1.12. Presentation of
the report to public
August 3-10 Was in-
cluded to
the 2016
Work Plan
Coalition,
Secretariat
SOFAZ Not
com-
pleted
Not
exist
2. Successful EITI
validation of
Azerbaijan
V
alid
atio
n
2.1. Commence the
Validation
January 1 January
1
Validator,
MSG, Sec-
retariat
Interna-
tional Sec-
retariat
Com-
pleted
Not
exist
Preserving the
compliant member-
ship status of Azer-
baijan
2.2. Initial inspection January 1 -
February 3
January
1 - Feb-
ruary 3
Validator,
MSG, Sec-
retariat
Interna-
tional Sec-
retariat
Com-
pleted
Not
exist
2.3. Hold meetings
with Validator and
coordinating support
for collecting the nec-
essary information
February 3-14 Febru-
ary 3-14
Secretar-
iat, MSG
Interna-
tional Sec-
retariat
Com-
pleted
Not
exist
2.4. MSG meeting
with the Validator.
Presentation of the
Validator on initial
findings
February 13 Febru-
ary 13
MSG,
Secretar-
iat, Vali-
dator
SOFAZ
Com-
pleted
Not
exist
2.5. Submission the
draft validation re-
port
February 15 Febru-
ary 17
Validator No fund-
ing re-
quired
Com-
pleted
Not
exist
2.6. Submission opin-
ions on the draft Vali-
dation report by the
MSG and the Valida-
tion Committee
February 27 Within 12
days of im-
plementing
Action 2.5
should be
presented
to the Vali-
dator
Febru-
ary 27
MSG, Sec-
retariat
No fund-
ing re-
quired
Com-
pleted
Not
exist
37
2.7. Presentation of
the final validation
report to the EITI
Boad and MSG
March 6 March 6 Validator No fund-
ing re-
quired
Com-
pleted
Not
exist
3. Organizing a
training for the
Company Group
to increase the
quality of EITI re-
porting
3.1. Discuss and ap-
prove the training
program, define the
training participants
April 20-30 July 23 Secretar-
iat, Com-
pany
Group⁷,
MSG
No fund-
ing re-
quired
Com-
pleted
Not
exist
Enhancing compe-
tency of the compa-
nies in filling out
the EITI reporting
templates and in-
creasing quality of
the EITI reporting 3.2. Conduct the
training
May 7-21 July 30 Secretar-
iat, Com-
pany
Group
SOFAZ AZN
500
Com-
pleted
Not
exist
4. Preparation,
disclosure of the
EITI Report and
Activity Report
for 2014 in ac-
cordance with
the EITI Standard
and their publica-
tion in a single
document
201
4 E
ITI
rep
ort
4.1. Discuss and ap-
prove the Terms of
Reference for the Au-
ditor
May 15 - July
15
Within two
month of
implement-
ing Action
1.3
Novem-
ber 6
MSG No fund-
ing re-
quired
Com-
pleted
Not
exist
Informing the pub-
lic about revenues
from extractive in-
dustries, enhancing
the content and in-
creasing the vol-
ume of EITI re-
ports, increasing
benefits and easing
the use of the EITI
data
4.2. Collect contextual
information
Novem-
ber 1
Secretar-
iat, MSG,
Auditor
SOFAZ AZN
4.995
Com-
pleted
Not
exist
4.3. Check the materi-
ality of payments by
companies to the
State Social Protec-
tion Fund (SSPF) for
2014
Decem-
ber 25
MSG, Sec-
retaiat
No fund-
ing re-
quired
Com-
pleted
Not
exist
4.4. Discuss and ap-
prove contextual in-
formation
Decem-
ber 25
MSG No fund-
ing re-
quired
Com-
pleted
Not
exist
4.5. Send reporting
templates to local and
foreign companies
May 15-22 July 24 Secretariat No fund-
ing re-
quired
Com-
pleted
Not
exist
38
4.6. Submit the Gov-
ernment's, local and
foreign companies'
reports to the Audi-
tor
May 18 -June
22
Within one
month of
implement-
ing Action
4.5
August
28
Commit-
tee⁸, Com-
pany
Group
No fund-
ing re-
quired
Com-
pleted
Not
exist
4.7. Conduct the rec-
onciliation process
June 22 -Au-
gust 21
Within two
month of
implement-
ing Action
4.6
Decem-
ber 25
Auditor SOFAZ AZN
22.590
Com-
pleted
Not
exist
4.8. Present Auditor's
reconciled report,
companies' individ-
ual reports and Gov-
ernment's report to
the MSG
September 1-8 Upon im-
plementa-
tion of Ac-
tions 4.4
and 4.7
Decem-
ber 25
Auditor,
MSG
No fund-
ing re-
quired
Com-
pleted
Not
exist
4.9. Initial comments
of the MSG to the
Auditor's report
September 3-
17
Was in-
cluded to
the 2016
Work Plan
MSG No fund-
ing re-
quired
Not
com-
pleted
4.10. Presentation
and approval of Au-
ditor's final Report
(covering MSG'S
comments)
September 10-
17
Was in-
cluded to
the 2016
Work Plan
Auditor,
MSG
No fund-
ing re-
quired
Not
com-
pleted
4.11. Place Govern-
ment's report, Audi-
tor's report and com-
panies' individual re-
ports on the websites
of the EITI Azerbai-
jan, SOFAZ, Coalition
September 17-
22
Was in-
cluded to
the 2016
Work Plan
Secretariat No fund-
ing re-
quired
Not
com-
pleted
Not
exist
39
and International Sec-
retariat
4.12.Publish Govern-
ment's final report in
the official govern-
ment newspaper
Was in-
cluded to
the 2016
Work Plan
Secretariat SOFAZ AZN
500
Not
com-
pleted
Not
exist
4.13. Presentation of
the NGO Coalition's
opinion
September
10 - October
12
Was in-
cluded to
the 2016
Work Plan
Coalition No fund-
ing re-
quired
Not
com-
pleted
Not
exist
A
nn
ual
Act
ivit
y r
epo
rt²
4.14 Conduct prelimi-
nary discussions on
the Activity report.
April 15 -
May 15
May 15 MSG No fund-
ing re-
quired
Com-
pleted
Not
exist
4.15.Prepare the draft
text of the report
April 15 -
June 15
June 15 MSG, Sec-
retarist
No fund-
ing re-
quired
Com-
pleted
Not
exist
4.16. Send required
information and ma-
terials to the Secretar-
iat
June 29 Coalition,
Company
Group,
Commit-
tee
No fund-
ing re-
quired
Com-
pleted
Not
exist
4.17. Approve the fi-
nal text of the report,
place it on the EITI
Azerbaijan website
June 15-22 June 29 MSG, Sec-
retariat
No fund-
ing re-
quired
Com-
pleted
Not
exist
Pu
bli
cati
on
of
rep
ort
s 4.18. Discuss the
draft document com-
bining the EITI report
and Activity report
October 1 -
December 29
Was in-
cluded to
the 2016
Work Plan
MSG, Sec-
retariat
No fund-
ing re-
quired
Not
com-
pleted
Not
exist
40
4.19.Publish the EITI
report (2014) and Ac-
tivity report (2014) in
a single document
Secretar-
iat
SOFAZ Not
com-
pleted
Not
exist
5. Improving
readability and
comprehensibil-
ity of the EITI re-
porting
5.1. Prepare a summary of
the EITI report in order to
maintain readability and
comprehensibility for pop-
ulation considering the in-
clusion of new infor-
mation to the report
September 22 -
October 22
Was in-
cluded to
the 2016
Work Plan
MSG No fund-
ing re-
quired
Not
com-
pleted
Not ex-
ist
5.2. Conduct researches on
determination of the ca-
pacity
for improving national re-
porting based on compari-
son of EITI countries' re-
porting experience in ac-
cordance with EİTİ Stand-
ard
June-Decem-
ber
Decem-
ber 25
Coalition No fund-
ing re-
quired
Com-
pleted
6. Conduction
meetings on ex-
change of experi-
ence, outreach
within country
and abroad for
the EITI imple-
mentation in
Azerbaijan
6.1. Deliver the Report to
public
Throughout
the year
Was in-
cluded to
the
2016 Work
Plan
Secretar-
iat, Coali-
tion
SOFAZ,
Interna-
tional Do-
nor or-
ganiza-
tions
Not
com-
pleted
Not ex-
ist
Raising public
awareness about
EITI implementa-
tion in Azerbaijan,
promotion of EITI's
general philosophy
and Azerbaijan's
EITI report, ex-
change of experi-
ences with other
countries
6.2. Prepare and publish
special print materials
(brochures, booklets,
books)
Throughout
the year
Secretar-
iat, Coali-
tion
SOFAZ,
Interna-
tional Do-
nor or-
ganiza-
tions
Com-
pleted
Not ex-
ist
41
6.3. Place the materials on
the website and distribute
hard copies
Throughout
the year
MSG, Sec-
retariat,
Coalition
No fund-
ing re-
quired
Com-
pleted
Not ex-
ist
6.4. Participate at the EITI
events held abroad (con-
ferences, workshops, train-
ings, exhibitions, exchange
programmes, etc.)
Throughout
the year
MSG, Sec-
retariat
SOFAZ,
Interna-
tional Do-
nor or-
ganiza-
tions
Com-
pleted
Not ex-
ist
6.5. Regularly upgrade
and update the EITI Azer-
baijan official website
Throughout
the year
Secretariat No fund-
ing re-
quired
Com-
pleted
Not ex-
ist
6.6 Conduct round-table
discussions and deliver
lectures at universities
Throughout
the year
October Coali-
tion,Secre-
tariat
Interna-
tional and
Local Do-
nor or-
ganiza-
tions,
Company
Group
Com-
pleted
Not ex-
ist
6.7 Conduct round-table
discussions in regions,
on central and regional TV
channels
Throughout
the year
April Coali-
tion,Secre-
tariat
Interna-
tional and
Local Do-
nor or-
ganiza-
tions,
Company
Group
Com-
pleted
Not ex-
ist
7. İmproving the
MSG's internal
management
7.1. Prepare and approve
Code of Conduct for the
MSG
November of
2015
Was in-
cluded to
the
2016 Work
Plan
Coalition,
MSG
Interna-
tional and
Local Do-
Not
com-
pleted
Not ex-
ist
Improving man-
agement,
increasing report-
42
nor or-
ganiza-
tions
ing and transpar-
ency
on MSG's activity
7.2. Prepare proposals on
"Rules on
prevention the conflict of
interests in the MSG"
December of
2015
Decem-
ber 25
MSG
Interna-
tional and
Local Do-
nor or-
ganiza-
tions
Com-
pleted
Not ex-
ist
7.3. Reporting of the Azer-
baijan EITI Secretariat
Regularly Decem-
ber 25
Secretariat No
funding
required
Com-
pleted
Not ex-
ist
43
Action Plan on implementation of corrective actions set by the
EITI Board to restore Azerbaijan’s EITI Compliant status In its meeting held in April 2015 in Congo Brazzaville the EITI Board designated Azerbaijan as a
Candidate country and set corrective actions that need to be addressed in order for Azerbaijan to
achieve compliance with the EITI Requirements:
1. In accordance with Requirement 1.3.b-e and the protocol on civil society participation in the
EITI, the government and the MSG should ensure that civil society representatives who are
substantively involved in the EITI process are able to
a. engage in public debate related to the EITI process and express opinions about the EITI process without
restraint, coercion or reprisal.
b. operate freely in relation to the EITI process. This should include ensuring that the civil society MSG
members are operationally and in policy terms independent of government and companies. In making this
assessment, the Secretariat Review is expected to cite evidence of any civil society constituency discussions
or agreed consistency policies related to ensuring policy and operational independence from members of
parliament from the ruling party, other political parties aligned with the government, or extractive compa-
nies; Evidence that any potential conflict of interests or issues affecting civil society MSG members’ inde-
pendence have been transparently disclosed; and that the details about the articles of association, objectives,
work programmes and funding sources of civil society organisations represented on the MSG are transpar-
ently disclosed. The government and the MSG should also take steps to ensure that civil society representa-
tives substantively engaged in the EITI process are able to freely access and use funding to carry out their
activities, including those of the EITI Coalition. Specifically, the government should ensure that the EITI
Coalition and its members and employees are able to access their bank accounts and register new grants for
the purpose of activities related to the EITI process and natural resource governance, and any further re-
strictions on NGO operations in natural resource governance should be avoided.
c. communicate and cooperate with each other regarding the EITI process.
d. be fully, actively and effectively engaged in the design, implementation, monitoring and evaluation of the
EITI process. The government and the multi-stakeholder group should take steps to ensure that civil society
representatives substantively engaged in the EITI process are able to organise training, meetings and
events related to the EITI process and natural resource governance.
e. speak freely on transparency and natural resource governance issues, and ensure that the EITI contrib-
utes to public debate. The government and the multi-stakeholder group should take steps to ensure that
civil society representatives substantively engaged in the EITI process are able to speak freely about the
Annex 3
44
EITI process and express views on natural resource governance without fear or threat of reprisal or harass-
ment of civil society members substantively involved in the EITI process. Specifically, the government
should ensure that the Coalition is able to freely access space for public events related to the EITI and facili-
tate public awareness campaigns and debates related to the EITI process and natural resource governance.
2. The MSG should agree a fully costed workplan that sets out objectives for implementation
linked to national priorities for the extractive sector (Requirement 1.4.a).
3. In accordance with Requirement 6.1, the MSG must ensure that the 2013 EITI Report con-
tributes to public debate.
4. In accordance with Requirement 7.2.a, future annual activity reports must include an assess-
ment of progress with achieving objectives set out in the workplan, including the impact and
outcomes of the stated objectives.
In its meeting in 05 May 2015 MSG tasked the EITI Secretariat to draft Activity Plan for the imple-
mentation of corrective actions. After the workshop on “Validation – corrective actions and action
steps for the compliant status” held with the participation of the representative of EITI Interna-
tional Secretariat Dyveke Rogan and MSG members the Activity Plan was developed.
Below tables illustrate implementation status of corrective actions in 2015 and 2016.
45
Directions Events
Responsi-
ble par-
ties
Results
Evidences
(Progresses, shown below, on activities of NGO
Coalition have been achieved during 2015, as a re-
sult of the meetings held and discussions done
with the World Bank, Multi-donor Trust Fund, the
CSSN, relevant state organizations.
Implementation status of corrective actions in 2015 April-December
46
1. Ensuring
free participa-
tion of the
Civil Society
within the EITI
process.
1.1 Organizing
TV debates
and discus-
sions.
MSG During 2015 the NGO Coalition held multiple TV de-
bates and discussions. 4 online TV programs (Eco-
nomic forum) were dedicated to EITI and natural re-
source governance (424 views in total). The programs
were also broadcasted in regional TV channels of
Sumgayit, Ganja and Guba (2.5 mln population)
In addition, the members of the Civil Society institu-
tions operating in Azerbaijan, gave interviews, pub-
lished articles, freely expressed their opinions in blogs
and social networks both in and outside of the coun-
try.
Coalition members, members of local Secretariat, local
authorities and representatives of the state organiza-
tions were participated in the mentioned events (de-
bates).
TV Debates:
Participation and role of the Civil Society in
EITI process -
https://www.youtube.com/watch?v=f9llm4JFM
uY
Extractive Industries Transparency Initiative
and participation of Azerbaijan -
https://www.youtube.com/watch?v=26Yx-
plXJbqo
2013 EITI Report: news and results-
https://www.youtube.com/watch?v=_nwoFJnO
2RY
State Oil Fund of the Republic of Azerbaijan -
https://www.youtube.com/watch?v=lFF-
MiHWl1w
Sovereign Prosperity Funds -
https://www.youtube.com/watch?list=PLk5558
GGDuW88vTrk-
kPuirm4ed3aj_FvX&v=U2MoipTwZlE
DEBATES:
On April 17, 2015 the event held by NGO Coa-
lition about "increasing public awareness on
EITI" in Neftchala region. State organizations,
civil society, companies involved in extractive
sector were participating in the event and
shared information on EITI activities. Repre-
sentatives of the local Secretariat and NGO Co-
alition gave answers to the questions of the ci-
vilians. An open debate were held with the citi-
zens about the Companies engagement to the
EITI reporting.
47
1.2 Organizing
a roundtable to
present Opin-
ion of NGO
Coalition on
EITI Report.
Coalition The roundtable of the presentation EITI NGO Coali-
tion’s opinion on the 2013 EITI Report was held by
the EITI NGO Coalition with the support of CSSN.
The event was held for the representatives of govern-
mental organizations, international organizations,
embassies, civil society institutions and mass media
http://eiti-ngo-azerbai-
jan.org/az/m%C9%99d%C9%99n-
s%C9%99nayesind%C9%99-s%C9%99ffafligin-
artirilmasi-qht-koalisiyasi-az%C9%99rbaycan-
respublikasinin-2013-cu-il-uzr%C9%99-mhst-
hesabatina-dair-hazirladigi-r%C9%99yi-ic-
timaiyy%C9%99t/
http://www.bizimyol.info/news/66524.html
http://modern.az/az/news/89939#gsc.tab=0
http://xeberler.az/new/details/koalisiyanin-
umumi-yigincagi-kecirilib--15446.htm
https://www.youtube.com/watch?v=hXjmTjIm
GkU
1.3 Organizing
press-confer-
ences
MSG http://www.eiti.az/index.php/az/senedler/ish-
planlari/607-ish-plani-2016
http://www.eiti.az/index.php/en/senedler-
2/work-plan-for-implementation-of-eiti
1.4 Preparing
short video
clips
MSG,
Secretar-
iat
48
1.5 Holding
seminars
MSG,
Secretar-
iat
1) The training on improvement of professionalism in
filling of EITI reports and increasing of EITI report
quality for the members of the Extractive Industries
Transparency Initiative (EITI) Memorandum - local
and foreign companies operating in mining field was
held at SOFAZ. Members of NGO Coalition also par-
ticipated at the training
2) In the framework of “public support for improving
transparency in extractive industries” project finan-
cially supported by CSSN the EITI NGO Coalition
held the workshop on “The compliance of the EITI
Report 2013 of Azerbaijan with EITI Standard’s re-
quirements” at SOFAZ. The workshop was organized
in order to raise NGO Coalition’s members awareness
about EITI implementation in Azerbaijan
3) In the framework of “public support for improving
transparency in extractive industries” project finan-
cially supported by CSSN NGO Coalition held the
workshop on “The EITI aim, implementation and use
of outcomes” at the Azerbaijan State University of
Economics. The workshop aimed to raise awareness
of youth on EITI process
http://www.eiti.az/index.php/az/xeber-
ler/587:mhst-uezr-coxt-r-fli-qrupun-iclas-ke-
cirilmisdir-6
http://eiti-ngo-azerbaijan.org/az/neft-fon-
dunda-mssa-qht-koalisiyasi-uzvl%C9%99ri-
ucun-seminar-kecirilib/
http://eiti-ngo-azerbaijan.org/az/mssa-qht-
koalisiyasi-iqtisad-universitetind%C9%99-sem-
inar-kecirib/
49
1.6 Holding bi-
lateral meet-
ings with rele-
vant state or-
ganizations
about blocked
bank accounts
and various re-
strictions.
MSG,
Secretar-
iat
1) 3 out of 6 frozen bank accounts of Coalition mem-
bers are unfrozen after negotiations during 2015. Un-
blocking all frozen accounts of Coalition members
was completed in the first half of 2016
2) Most criminal cases against NGOs are stopped. Ne-
gotiations between the heads of NGOs defending the
rights of some activists continue.
3) Excluding few cases all limitations to leave the
country is lifted. Free entrance and exit were also
granted to local office members of international
organizations.
4) The problem with harsh security checks in the air-
port for NGO activists is resolved. Only one Coalition
member (Zaur Akbar) complained about strict
security check at the airport.
5) The registration of grant contracts signed in the
past years has started. All Coalition member
organizations presented their grant contracts and got
appropriate notices.
6) Inspection by tax and prosecutor members of
NGOs were stopped. Confiscated equipments and
documents are not returned to some owners. Investi-
gating bodies confirmed that this problem can be re-
solved. The reason of this situation is that some NGO
members are abroad and cannot sign the act.
7) Penalties to some NGOs are lifted. Other NGO
members noted that even though penalties were not
https://www.meydan.tv/az/site/poli-
tics/12893/%C6%8Flim%C9%99mm%C9%99d-
Nuriyev''Koalisiya-%C3%BCzvl%C9%99rinin-
cinay%C9%99t-i%C5%9Fi-v%C9%99-vergi-
sanksiyalar%C4%B1-
ba%C4%9Flan%C4%B1b''.htm
http://www.con-
tact.az/docs/2016/Chetin%20sual/042000153567
az.htm#.V3U6BOt96Uk
http://teleqraf.com/news/91657
http://www.xebersaati.com/8048-elimemmed-
nuriyev-qht-nin-vergi-borclari-dayandirilmasi-
barede-qerar-qebul-edildi-musahibe.html
50
lifted from their bank account, the penalty amount
was not charged.
8) For ensuring active participation of civil society in
EITI CSSN provides NGO Coalition with financial
aid. Council covers Coalition’s institutional expenses,
including travel costs, costs related to office, conduc-
tion of trainings and meetings.
In March 2015 CSSN defined “State support to EITI
process” as one of the priority directions for the
allocation of grants.
The participation of 3 Coalition members at Lima
Conference was also financially supported by the
Council.
9) Problem with information update on register is re-
solved. Information update is completed within 5
days if all required documents are in place.
51
1.7 Holding
wide-range
consultations
about financial
aid opportuni-
ties from
World Bank,
Multi-donor
Trust Fund,
CSSN, relevant
ministeries
(e.g. Ministry
of Youth and
Sport).
MSG,
Secretar-
iat
The coordinator of NGO Coalition held 8 meetings
with the chairman of the EITI Commission and 7
meetings in Presidential Administration. Throughout
the year State Support for NGOs allocated grants
amounted 193.000 AZN to different projects of the 32
Coalition member organizations.
One member organization of the Coalition got a grant
for the project related to defense of rights of extractive
industry workers from international donor (EEP- Eu-
ropean Endowment for Democracy)
http://eiti-ngo-azerbai-
jan.org/az/az%C9%99rbaycan-prezidenti-ya-
ninda-qeyri-hokum%C9%99t-t%C9%99ski-
latlarina-qht-dovl%C9%99t-
d%C9%99st%C9%99yi-surasinin-s%C9%99dri-
mill%C9%99t-v%C9%99kili-azay-quliyevin-
musahib%C9%99si/
52
1.8 Ensuring
free consulta-
tions between
Coalition and
companies,
written corre-
spondence be-
tween Coali-
tion and MSG
members,
meetings with
international
organizations,
participation
of each EITI
party in Coali-
tion’s events
MSG Members of the NGO Coalition are going on to coop-
erate with EITI stakeholders and free consultations in
MSG meetings, Working Group meetings, events or-
ganized by local Secretariat, etc.
http://www.eiti.az/index.php/az/xeber-
ler/587:mhst-uezr-coxt-r-fli-qrupun-iclas-ke-
cirilmisdir-6
http://www.eiti.az/index.php/az/xeberler/111-
mhsht-yenilikler/2016/616-doevl-t-neft-fon-
dunda-mhst-uezr-komissiyan-n-iclas-ke-
cirilmisdir-2
2. Tasks to be
done for link-
ing objectives
of the Work
Plan to the na-
tional priori-
ties.
2.1 Ensuring to
include na-
tional priori-
ties to the 2016
Work Plan and
to link action
steps to these
priorities.
Work Plan for 2016 was prepared together with Secre-
tariat and Working Group, discussed in MSG meeting
and approved by MSG stakeholders. Based on Inter-
national Secretariats comments, activity steps of the
2016 Work Plan reflects objectives those are linked to
national priorities.
http://www.eiti.az/index.php/az/senedler/ish-
planlari/607-ish-plani-2016
http://www.eiti.az/index.php/en/senedler-
2/work-plan-for-implementation-of-eiti
53
3. Tasks to be
done for the
contribution of
EITI Report for
the public dis-
cussions.
3.1 Ensuring
the prepara-
tion and distri-
bution of hard-
copies of EITI
Report.
MSG,
Secretar-
iat
2013 EITI Report was actively disseminated among
population by mainly on-line sources (web-sites of
the Azerbaijan EITI, State Oil Fund and NGO Coali-
tion). Hard copies of the reports were distributed
among civil society members and local communities
through NGOs. The reports of the government for
2013 and 2014 were published in the state newspa-
pers.
3.2 Publication
of EITI Report
on website.
Secretar-
iat
The Azerbaijani and English versions of the 2013 and
2014 EITI Report were placed in EITI Azerbaijan offi-
cial website. Public was informed about the availabil-
ity of reports through state newspaper and press-re-
leases.
http://www.eiti.az/index.php/az/hesabatlar
3.3 Making
EITI Report
easily graspa-
ble and using
an appropriate
language
MSG,
Auditor
IA and Working Group worked a lot for producing
comprehensible and easily graspable EITI reports.
Recommendations of the NGO Coalition on restruc-
turing the report were also reviewed in the course of
work.
The preparation of the summary report of the 2014
EITI Report was substantially finalized in 2015 and
the report was printed in 2016.
Secretariat has been preparing electronic data files in
excel spreadsheets and placing them at www.eiti.az
starting from 2013 EITI Report
http://www.eiti.az/index.php/az/hesaba-
tlar/2014
54
3.4 Ensuring
that EITI Re-
ports contrib-
utes to public
debate and
raise aware-
ness through
events orga-
nized by gov-
ernment, civil
society and
companies.
MSG 1) The Coalition of Azerbaijan Non-government Or-
ganizations for “Improving Transparency in Extrac-
tive Industries” (NGO Coalition) held roundtables in
regions supported by the World Bank and State Oil
Fund of the Republic of Azerbaijan (SOFAZ) in Shir-
van, Neftchala and Gadabay. The current events were
held in order to inform and increase awareness of citi-
zens, representatives of Civil Society and local author-
ities and communities
2) In the framework of “public support for improving
transparency in extractive industries” project finan-
cially supported by CSSN the EITI NGO Coalition
held public debates on “The EITI aim, implementa-
tion and the use of outcomes” in Siyazan and Salyan
3) In the framework of “public support for improving
transparency in extractive industries” project finan-
cially supported by CSSN the EITI NGO Coalition
held the workshop on “The compliance of the EITI
Report 2013 of Azerbaijan with EITI Standard’s re-
quirements” at SOFAZ. The workshop was organized
in order to raise NGO Coalition’s members’ aware-
ness about EITI implementation in Azerbaijan. 30 Co-
alition members participated in the workshop.
http://eiti-ngo-azerbai-
jan.org/az/m%C9%99d%C9%99n-
s%C9%99nayesind%C9%99-s%C9%99ffafligin-
artirilmasi-koalisiyasi-
g%C9%99d%C9%99b%C9%99y-
s%C9%99h%C9%99rind%C9%99-t%C9%99lim-
kecirib/
http://eiti-ngo-azerbai-
jan.org/az/m%C9%99d%C9%99n-
s%C9%99nayesind%C9%99-s%C9%99ffafligin-
artirilmasi-koalisiyasi-neftcala-
s%C9%99h%C9%99rind%C9%99-t%C9%99lim-
kecirib/
http://eiti-ngo-azerbai-
jan.org/az/m%C9%99d%C9%99n-
s%C9%99nayesind%C9%99-s%C9%99ffafligin-
artirilmasi-koalisiyasi-sirvan-
s%C9%99h%C9%99rind%C9%99-t%C9%99lim-
kecirib/
http://eiti-ngo-azerbaijan.org/az/mssa-
koalisiyasi-siy%C9%99z%C9%99n-v%C9%99-
salyanda-ictimai-muzakir%C9%99-kecirib/
http://eiti-ngo-azerbaijan.org/az/neft-fon-
dunda-mssa-qht-koalisiyasi-uzvl%C9%99ri-
ucun-seminar-kecirilib/
55
3.5 Press con-
ference related
to the 2013 and
2014 EITI Re-
ports
MSG,
Secretar-
iat
According to the 2016 Work Plan, holding the press
conference on 2013 and 2014 EITI Report is planned
for July 2016.
http://www.eiti.az/index.php/az/senedler/ish-
planlari/607-ish-plani-2016
http://www.eiti.az/index.php/en/senedler-
2/work-plan-for-implementation-of-eiti
4. Tasks to be
done for the
annual activity
report.
4.1 2016 an-
nual activity
reports must
include an as-
sessment of
progress with
achieving ob-
jectives set out
in the work-
plan, including
the impact and
outcomes of
the stated ob-
jectives.
MSG,
Secretar-
iat
Note: Annual Activity Report will be disclosed by 1
July 2016 according to EITI Standard.
56
Directions Events
Responsi-
ble par-
ties
Results
Evidences
(Progresses, shown below, on activities of NGO
Coalition have been achieved during 2015, as a re-
sult of the meetings held and discussions done
with the World Bank, Multi-donor Trust Fund,
CSSN, relevant state organizations.
Implementation status of corrective actions in 2016 January-July (activi-
ties that fulfilled after the reporting period)
57
1. Ensuring
free participa-
tion of the
Civil Society
within the EITI
process.
1.1 Organizing
TV debates
and discus-
sions.
MSG During 2016 the NGO Coalition held multiple TV de-
bates and discussions.
In addition, the members of the Civil Society institu-
tions operating in Azerbaijan, gave interviews, pub-
lished articles, freely expressed their opinions in blogs
and social networks both in and outside of the coun-
try.
Coalition members, members of local Secretariat, local
authorities and representatives of the state organiza-
tions were participated in the mentioned events (de-
bates).
TV Debates:
Zaur Əkbər -
https://www.youtube.com/watch?v=DfolJPui-
weI
1.2 Organizing
a roundtable to
present Opin-
ion of NGO
Coalition on
EITI Report.
Coalition The opinion published on the NGO Coalition’s web-
site. Roundtable to be held in the course of the year.
http://eiti-ngo-azerbaijan.org/wp-content/up-
loads/2012/10/Coalition-Review-to-2014-Re-
port-EITI.pdf
58
1.3 Organizing
press-confer-
ences
MSG Not executed
1.4 Preparing
short video
clips
MSG,
Secretar-
iat
This issues was discussed with related companies.
Not executed by reason of too high prices. This action
step will be considered.
1.5 Holding
seminars
MSG,
Secretar-
iat
On June 9 2016 seminar on EITI implementation were
held in Mingachevir and Tartar. The events were con-
ducted with the financial support of CSSN in the
framework of the project “EITI Awareness raising in
regions”
http://eiti-ngo-azerbai-
jan.org/az/m%C9%99d%C9%99n-hasilatinda-
s%C9%99ffafliq-t%C9%99s%C9%99bbusu-
il%C9%99-bagli-ming%C9%99cevir-v%C9%99-
t%C9%99rt%C9%99rd%C9%99-seminar-ke-
cirilib/
59
1.6 Holding bi-
lateral meet-
ings with rele-
vant state or-
ganizations
about blocked
bank accounts
and various re-
strictions.
MSG,
Secretar-
iat
In general, CSSN financed 34 projects of 33 member
organizations of Coalition and allocated 314000 AZN
in total.
6 project proposals bided in the competition an-
nounced by the Council and all of them were fi-
nanced ( 62.500 AZN)
Council also determined “Initiatives on promoting
open government and increasing transparency in ex-
tractive sectors” as one of the priority directions for
the second competition.
https://www.meydan.tv/az/site/poli-
tics/12893/%C6%8Flim%C9%99mm%C9%99d-
Nuriyev''Koalisiya-%C3%BCzvl%C9%99rinin-
cinay%C9%99t-i%C5%9Fi-v%C9%99-vergi-
sanksiyalar%C4%B1-
ba%C4%9Flan%C4%B1b''.htm
http://www.con-
tact.az/docs/2016/Chetin%20sual/042000153567
az.htm#.V3U6BOt96Uk
http://teleqraf.com/news/91657
http://www.xebersaati.com/8048-elimemmed-
nuriyev-qht-nin-vergi-borclari-dayandirilmasi-
barede-qerar-qebul-edildi-musahibe.html
60
61
1.7 Holding
wide-range
consultations
about financial
aid opportuni-
ties from
World Bank,
Multi-donor
Trust Fund,
CSSN, relevant
ministeries
(e.g. Ministry
of Youth and
Sport).
MSG,
Secretar-
iat
Organization of Genereal Assembly meetings of the
NGO Coalition is financed by CSSN. (7500AZN)
Council also provides financial assistance on institu-
tional expenditures of Coalition (15000 AZN)
http://qhtxeber.az/news/a-56129.html
62
1.8 Ensuring
free consulta-
tions between
Coalition and
companies,
written corre-
spondence be-
tween Coali-
tion and MSG
members,
meetings with
international
organizations,
participation
of each EITI
party in Coali-
tion’s events
MSG Members of the NGO Coalition are going on to coop-
erate with EITI stakeholders and free consultations in
MSG meetings, Working Group meetings, events or-
ganized by local Secretariat, etc.
Coalition members participated at 3 MSG meeting
and 1 Working Group meeting.
http://www.eiti.az/index.php/az/xeberler/111-
mhsht-yenilikler/2016/621-doevl-t-neft-fon-
dunda-mhst-uezr-komissiyan-n-iclas-ke-
cirilmisdir-3
http://www.eiti.az/index.php/az/xeberler/111-
mhsht-yenilikler/2016/616-doevl-t-neft-fon-
dunda-mhst-uezr-komissiyan-n-iclas-ke-
cirilmisdir-2
2. Tasks to be
done for link-
ing objectives
of the Work
Plan to the na-
tional priori-
ties.
2.1 Ensuring to
include na-
tional priori-
ties to the 2016
Work Plan and
to link action
steps to these
priorities.
The Annual Work Plan was published on January,
2016. Action Steps are linked to national priorities.
http://www.eiti.az/index.php/en/senedler-
2/work-plan-for-implementation-of-eiti
63
3. Tasks to be
done for the
contribution of
EITI Report for
the public dis-
cussions.
3.1 Ensuring
the prepara-
tion and distri-
bution of hard-
copies of EITI
Report.
MSG,
Secretar-
iat
Professionally designed hard copies of 2013 EITI Re-
port was actively disseminated among civil society
members and local communities through NGOs.
3.2 Publication
of EITI Report
on website.
Secretar-
iat
2014 EITI report was published on January, 2016. http://www.eiti.az/index.php/en/reports/2014
3.3 Making
EITI Report
easily graspa-
ble and using
an appropriate
language
MSG,
Auditor
2014 Summary Report was prepared in order to be
graspable for citizens.
http://www.eiti.az/index.php/en/reports/2014
64
3.4 Ensuring
that EITI Re-
ports contrib-
utes to public
debate and
raise aware-
ness through
events orga-
nized by gov-
ernment, civil
society and
companies.
MSG Events are planned for 2016
65
3.5 Press con-
ference related
to the 2013 and
2014 EITI Re-
ports
MSG,
Secretar-
iat
According to the 2016 Work Plan, holding the press
conference on 2013 and 2014 EITI Report is planned
for 2016 (shifted to July).
http://www.eiti.az/index.php/az/senedler/ish-
planlari/607-ish-plani-2016
http://www.eiti.az/index.php/en/senedler-
2/work-plan-for-implementation-of-eiti
4. Tasks to be
done for the
annual activity
report.
4.1 2016 an-
nual activity
reports must
include an as-
sessment of
progress with
achieving ob-
jectives set out
in the work
plan, including
the impact and
outcomes of
the stated ob-
jectives.
MSG,
Secretar-
iat
2015 EITI Progress Report was published on July 1,
2016
http://www.eiti.az/index.php/en/reports/2015